Tourism: An Export Industry

Hundreds of millions of people follow the World Cup. This unique combination of sportsmanship and drama unfolds every four years. There have been protests in the streets and there will be competition of epic proportion on the field. At this very moment, there is a spotlight shining so bright on Brazil that most of us are blind to what is actually happening on the ground, including me.

The vast majority of the money used to build the infrastructure required to host the games comes from taxpayers. Many protestors in Brazil would rather see public money go to investments in health and education. I believe the public officials in Brazil feel the same way. However, they believe that hosting the games is a means to achieving greater investment in health and education down the road.

Tourism is an export industry. Meaning, Brazil is actually exporting its stadiums, hotels, restaurants, and other amenities to millions of tourists. For example, a World Cup stadium seat is exported to a German citizen because the seat was purchased with Euros earned in Germany. If the tourism industry is nurtured over time, so can public investments in health and education. Granted there is a need for taxation, but the tax burden falls on the tourist, not the citizen.